We have all heard that the real estate market in Barrie is booming! In anticipation of the spring market, let’s discuss some of the unanticipated costs of a real estate transaction:
Adjustments: If the seller has pre-paid expenses, the purchaser will have to reimburse for those on closing. Property taxes, fuel oil fill up, condo fees are some examples of line items that get adjusted on closing.
Land Transfer Tax: Make sure you determine the correct fee for this. Ontario has its own Land Transfer tax but if you are buying in Toronto, there is also an additional tax for the city. Some people qualify for a rebate. Ask your agent or lawyer to give you the correct amount of LTT payable.
Connection fees: There are often deposits required to set up new utilities accounts and to read meters on closing. Double check the cost of these to make sure you have enough $ set aside.
Home inspection: This is an extremely important step in buying a home. Fees vary but you could avoid some large expenses in the long run by arming yourself up front about issues with the home.
Penalties: If you are selling, your mortgage lender may charge a pre-payment penalty and a discharge fee. Contact your lender before deciding to sell, so you know what the penalties will be for paying out your mortgage.
Moving fees: Make sure to speak to your lawyer to understand when your key to your new home will be available before booking your moving truck. Movers can be expensive and you don’t want to have much wasted time on closing if it can be avoided.
Professional Fees: Generally, you will require a realtor, a mortgage broker/agent and a lawyer as well as other professionals such as home inspectors, and insurance agents. Confirm all the fees and out of pocket expenses for each, and be aware the Realtor’s commission is subject to HST in addition (many clients are surprised by this!).
Whether you are selling or buying, having a lawyer you trust and who is available to you during the process is important! Contact Laura Boyd or Dr. Brett Degoldi at Ewen Boyd (705-252-6730) if you need assistance with Real Estate in 2017. Most of all, best of luck in your new home!